When it comes to buying a foreclosure, the moot question is how safe is it to do so? Experts believe, if title insurance is available on a previously foreclosed house, it is always safe to buy a foreclosed house. Title insurance ensures that even if the house was wrongly repossessed, the previous owner will never be able to seize it or lay a claim over it. If the previous owners claim is legally tenable he would get some monetary compensation. This means the new owner would have all rights over the new house.
Buying a bank seized foreclosed property is always safer than buying houses from foreclosed auctions. Such houses are also known as REO or real-estate owned by a bank. REO properties are also sold by real-estate agents.
One disadvantage with buying REO houses is that most of them happen to be in worn out shape. These houses are sold long after they are foreclosed and are more often than not in a bad shape. Nowadays most real estate foreclosed properties are grabbed by investors. They buy the properties upfront, spruce it up and sell them.
Title insurance on real estate foreclosed property protects a new buyer from unforeseen document related defects like forged signatures, improper documentation, unknown liens etc.
Like title insurance, it is also very important to seek the advice of an attorney before buying a foreclosed property. A real estate attorney specializing in foreclosures can be of considerable help.
It is safe to buy a foreclosed property as long as you are protected by a title insurance policy.
No comments:
Post a Comment